Why India needs to Budget-proof higher education for becoming talent & teaching global superpower

India currently holds the world’s greatest youth population, however, it is not perceived as a skilled economy. This weakens our growth momentum while also negatively impacting our mission of accelerating India’s stature at par with our global counterparts.

One of the brewing concerns remains the higher cost and tax obligations attached to higher education. Moreover, GST that comes with Edtech goods is higher than traditional education which makes online/skill-based learning an expensive and less popular affair. Such circumstances have also accelerated the lack of domain experts within the ecosystem as the working population needs constant upskilling to be able to drive growth results. But we don’t have enough incentives for them to pursue it frequently.

India needs to make Lifelong Learning a household phenomenon.

India’s NEP 2020 has clocked several milestones in the last two years yet lags aggressive push in revamping the education system. Year-on-year we have witnessed a certain amount of increase in Budgetary allocation towards the overall Education inclusive K12 + Higher + skill-based, yet it doesn’t add up to 6% of the total GDP, which in fact is a problem statement. The upcoming Budget must increase the allocation to 6 per cent for India to enhance the learning infrastructure and adoption of Edtech-led services, and higher grants for building tech infrastructure and research arms.

In the midst of other developments, GOI’s recent notification on NDU under NEP 2020 is another milestone in the making. It will accelerate collaboration between offline and online private players and Tech Service Providers (TSP) to co-create a learning ecosystem while also scaling the quality of higher education even across non-metros and remote regions. This initiative, if implemented effectively, could be a major step towards bridging the digital divide in education and could also become a UPI moment for India, similar to its success in the financial sector.

Additionally, the government could also encourage collaboration between industry and education providers to develop training programs that align with the skills needed in the current job market. This could include partnerships between companies and universities to create customized training programs or the creation of industry-led training centers that focus on specific skills and technologies. A clear and well-funded strategy for skill-based learning can help ensure that professionals have the skills they need to succeed in the modern workforce, while also helping companies stay competitive in the global marketplace.

Evolving corporate trends and the rapid pace of technological change have made it necessary for professionals to constantly upskill to stay relevant and competitive in the job market. This requires a strong emphasis on skill-based learning and a dedicated budgetary allocation for this purpose. Companies must invest in learning & development and allocate budgets for manpower development in sectors.

One way to achieve this is to institutionalize a framework for corporates & key stakeholders to accelerate the adoption of upskilling as a constant event. It must offer them legitimate tax benefits, unlike the present times when there’s no tax exemption for professionals or corporates, thereby making upskilling a future or another calendar event. This also brings us to a point where we need more skilled Teachers and professors within the country. They must undergo frequent upskilling programs under the purview of NEP 2020 to refresh their knowledge and equip themselves with evolving techniques of teaching. Especially across non-metros, we have huge untrained talent residing who enough need push from the government to be able to make a sound learning decision. However, they are surrounded by apprehensions around online learning and more than that are tied up with financial liabilities owing to economic uncertainty, which makes it difficult for them to learn frequently, thereby also putting them out of employability. GOIs support in the allocation of Budget towards skill development or skill-based courses for teachers will propel the adoption and popularity of online learning and will encourage an army of skilled teachers/mentors/professors to lead India’s growth trajectory.

Allocating higher Budgets for mandatory learning and development purposes across corporates will give rise to a more experienced talent pool who are adept with new-age skill competencies while also training teachers with requisite skill proficiencies for enhanced tutoring/schooling methods. Such strong initiatives will strengthen India’s competitiveness and make it the Talent and Teaching global superpower.

The University Grants Commission (UGC) of India recently issued a notification that prohibits foreign higher education institutions (FHEIs) from offering degrees or diplomas to Indian students through distance education mode or online mode without the prior approval of the UGC. This has raised many questions than responses about the implications of this notification for the growth of online education in India.

While the intention behind this move may be to ensure the quality and credibility of foreign education offered to Indian students, it has raised questions about the lack of clear guidelines and regulations for the effective operation of FHEIs in India. It also appears extremely rigid and restrictive at the moment, which could limit the opportunities for Indian students to access quality foreign education.

For the effective operations of the FHEIs in India, the Government needs to lay down a stronger focus on scalability and less rigid protocols. This will ensure that Indian students can access quality education while also protecting the interests of Indian education providers. Additionally, the government should also work closely with foreign institutions and EdTech companies to develop a co-created curriculum incorporating hands-on training and industry-led learning for maximum career results.

In a nutshell, India needs to financially secure and Budget-proof its educational system, particularly in higher education and skill-related segments to propel growth and development. A full-proof strategy and appropriate Budget allocation will strengthen our ecosystem across all levels and will lead to two-pronged growth points: (a) build stronger layers to accelerate the adoption of constant upskilling, and (b) encourage higher participation by key stakeholders, thereby making India a progressive economy with rising per capita income.